The House of Reps has a solution to those crazy AIG bonuses: a new tax that will claw back 90 percent of the income of anyone paid more than $250,000 by any firm that got more than $5 billion in bailout money.
The House measure would apply a 90% tax on bonuses given to employees who earn more than $250,000 at any firm that received more than $5 billion in bailout money.
A Senate proposal would would impose a 35% excise tax on companies paying bonuses and a 35% tax on employees receiving them. It would apply to all companies that received federal bailout funds.
Sen. Harry Reid, D-Nev., the Senate Majority Leader, said he doesn't think it will be much of a problem to resolve the differences between the House and Senate. They are hoping to move on the Senate bill next week.
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